Jafferjee, A.A. V. Subbiah Pillai, P.R.

1953 Present : Gratiaen J. and Gunasekara J.

A. A. JAFFERJEE et al., Appellants, and P. R. SUBBIAH PILLAI et al., Respondents

S. C. 319-D. C. Colombo, 17,563

Contract-Sale of goods- Executory contract-Price in excess of statutory maximum-Illegality-Refund of part payment of price.

Where, in a contract for sale of goods, the price agreed upon exceeded the statutory maximum permitted by a Price Control Order which was in operation at the time when the contract was entered into-

Held, (i) that the contract was contrary to public policy and, therefore, void. The supervening circumstance that the control was lifted, and the price charged became legal, during what remained of the period fixed for delivery of the goods could not have the effect of removing the taint of illegality which vitiated the contract at its very inception.

(ii) that the defaulting seller could not, in the circumstances of the case, be ordered to refund any payment made to him under the illegal contract.

APPEAL from a judgment of the District Court, Colombo.

N. E. Weerasooria, Q.C., with F. A. Kandiah, W. D. Gunasekera and Ivan Perera, for the defen

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